Allowed

Canara Bank v. M S New Shubh Laxmi Garments

DRT22 Sept 2022OA/155/2022

Case brief

AI extract

What is this about?

The applicant bank sought recovery of a defaulted SODH credit facility. The Tribunal, upon the defaulters' absence, allowed the application, holding the respondents liable to pay the outstanding principal, interest, and costs, and directed the issuance of a recovery certificate.

What did the court decide?

The respondents were directed to pay Rs. 31,60,839.14 with future interest at 10% p.a. and costs. A Recovery Certificate was issued to realize the amount from their assets.

Canara Bank versus M S New Shubh Laxmi Garments — Banking and Recovery | DRT (2022)

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“ORIGINAL APPLICATION” No. 155 OF 2022

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIVEK SAXENA

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PRESIDING OFFICER

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O.A. NO. 155 OF 2022

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DATE OF DELIVERY OF ORDER 22/09/2022

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Canara Bank , having its registered head office at 112 J C Road, Town Hall Junction, Bengaluru, Karnatakaand amongst other branch offices, a Branch at Dausa-II, Jaipur - 303303 through its Senior Branch Manager.

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…. Applicant Bank….

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V E R S U S

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M/S NEW SHUBHLAXMI GARMENTS , through its ProprietorMr. Dharmendar Singh Rajawat, havingregistered office at KhadiBhandar Road, Near Head Post Office, Dausa - 303303.

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MR. DHARMENDAR SINGH RAJAWAT S/o Mr. Sukhveer Singh Rajawat, Resident of A-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

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M/S RAJAWAT SUITING AND SHIRTING , through its ProprietorMrs. SushmlataKanwar, having registered office at A-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

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MRS. SUSHMLATAKANWAR W/o Mr. Dharmendar Singh Rajawat, Resident ofA-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

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MR. RAMESH CHAND MEENA S/o Mr. Ramphool Meena, Resident of Village Devanwada, Post Gothda, Dausa - 303303.

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MR. DEEPAK KUMAR SINGH S/o Mr. Heera Narayan Singh, Resident ofA-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

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……Defendant….

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Counsel for the Applicant Bank - Shri Alok Garg & Shri N.K. Zaveri Defendant are Ex-parte

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OA No. 155 OF 2022

JUDGMENT

The Applicant Bank originally filed this O.A. on 27-12-2021, against the Defendant for the recovery of a sum of Rs.31,60,839.14/- (Thirty One Lacs Sixty Thousand Eight Hundred Thirty Nine and paisa Fourteen Only) on SODH Credit Facility @ 9.70% p.a. from the Defendant with date of filing this original application till the date of realization and in default by sale of mortgage property i.e.-"RESIDENTIAL PLOT NO. 88, KHASRA NO. 2180, RAJ VIHAR COLONY, GUPTESHWAR NAGAR, DAUSA - 303303 ADMEASURING OF 115.00 SQ. YARDS". AND hypothecated goods etc and as well as other Personal movable and immovable properties/assets of Defendant, jointly and severally. The applicant bank is entitled to proceed against the same towards recovery of its debt. The applicant bank is entitled to the costs and expenses of the original application.

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The brief facts of the case are-

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That the present original application was filed by the applicant bank vide notification dated 01.04.2020.

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That the Defendant no. 1 through Defendant no. 2 approached and requested to sanction of SODH credit facility of Rs. 20.00 lacs for working capital.

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That the applicant bank has sanctioned the above loan facility of Rs. 20.00 lacs to Defendant. The Defendant executed required loaning documents in favour of applicant bank.

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That in order to secure the repayment of the loan amount, the Defendant no. 2 has created a mortgage by way of deposit of title deeds of property i.e. Residential Plot No. 88, Khasra No. 2180, Raj Vihar Colony, Gupteshwar Nagar, Dausa - 303303 admeasuring of 115.00 sq. yards in favour of applicant bank (The detailed description of property is given in para no. 5.2 of OA). (Now this Mortgaged property was sold by the applicant bank under the SARFAESI Act, 2002 on 10.04.2020, therefore, no mortgaged property is available for outstanding amount).

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OA No. 155 OF 2022

That the Defendant failed to abide by the financial discipline of the credit facilities and further failed & neglected to regularize the account satisfactory, therefore, the account of Defendant classified as NPA on 27.12.2018 as per guidelines of RBI.

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That the applicant bank prayed to issue a recovery certificate for the aforesaid amount against the Defendant and also entitled to realize outstanding amount by the sale of other Personal movable and immovable properties/assets of Defendant, jointly and severally and hypothecated goods etc. The applicant bank is entitled to proceed against the same towards recovery of its debt. The applicant bank is entitled to the costs and expenses of the original application.

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The applicant bank filed its evidence affidavit along with list of documents, annexing therewith Exhibit A/1 to A/25.

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Heard the Ld. Counsel for the applicant bank.

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The point that arise for consideration is: Whether the applicant bank is entitled to the claim as prayed for?

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As stated supra, the Defendant remained ex-parte. The applicant bank filed the evidence affidavit coupled with the recitals in the documents, viz Exhibit A/1 to A/25 marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendant. Hence, I hold that the Defendant are liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

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In the result, this O.A. No. 155 OF 2022 is allowed declaring that:-

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a) The Defendant are liable to pay to the applicant bank a sum of Rs.31,60,839.14/- (Thirty One Lacs Sixty Thousand Eight Hundred Thirty Nine and paisa Fourteen Only) with future interest @ 10% p.a. (Simple) from the

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OA No. 155 OF 2022

date of filing the original application till the date of realization.

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b) The applicant bank is entitled to recover the above amount by the sale of other Personal movable and immovable properties/assets of Defendant, jointly and severally and hypothecated goods etc. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs and expenses of the O.A.

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The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 03.01.2023 .

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Prepare Recovery Certificate accordingly.

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A copy of the Judgment and Recovery Certificate be given or sent by registered post to each of the parties free. A copy of the Recovery Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law.

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order pronounced in the open court today i.e. 22/09/2022 .

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Place-Jaipur Dated-22/09/2022

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OA No. 155 OF 2022

BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIVEK SAXENA

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PRESIDING OFFICER

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O.A. NO. 155 OF 2022

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DATE OF DELIVERY OF ORDER 22/09/2022

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RECOVERY CERTIFICATE

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(UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993)

…. Applicant Bank….

V E R S U S

M/S NEW SHUBHLAXMI GARMENTS , through its ProprietorMr. Dharmendar Singh Rajawat, havingregistered office at KhadiBhandar Road, Near Head Post Office, Dausa - 303303.

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MR. DHARMENDAR SINGH RAJAWAT S/o Mr. Sukhveer Singh Rajawat, Resident of A-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

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M/S RAJAWAT SUITING AND SHIRTING , through its ProprietorMrs. SushmlataKanwar, having registered office at A-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

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MRS. SUSHMLATAKANWAR W/o Mr. Dharmendar Singh Rajawat, Resident ofA-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

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MR. RAMESH CHAND MEENA S/o Mr. Ramphool Meena, Resident of Village Devanwada, Post Gothda, Dausa - 303303.

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MR. DEEPAK KUMAR SINGH S/o Mr. Heera Narayan Singh, Resident ofA-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

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……Defendant….

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Recovery Certificate for Rs. 31,60,839.14/-

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In terms of final order dated 22/09/2022 passed by this Tribunal in the above mentioned case, it is ordered that the-

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OA No. 155 OF 2022

a) The Defendant are liable to pay to the applicant bank a sum of Rs.31,60,839.14/- (Thirty One Lacs Sixty Thousand Eight Hundred Thirty Nine and paisa Fourteen only) with future interest @ 10% p.a. (Simple) from the date of filing the original application till the date of realization.

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b) The applicant bank is entitled to recover the above amount by the sale of other Personal movable and immovable properties/assets of Defendant, jointly and severally and hypothecated goods etc. The applicant bank is entitled to proceed against the same towards recovery of its debt

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c) The applicant bank is entitled to the costs and expenses of the O.A.

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ii. Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 03.01.2023 .

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor.

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This Certificate has been issued under my signatures and seal of the Tribunal on this 22/09/2022 .

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Place-Jaipur Dated-22/09/2022

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OA No. 155 OF 2022

FORM NO. 10

[See Regulation-24(1)]

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DEBTS RECOVERY TRIBUNAL First Floor, Sudharma-II, Opp.Kisan Bhawan, Lal Kothi Shopping Centre, Tonk Road, JAIPUR- 302015

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SCHEDULED TO RECOVERY CERTIFICATE MEMO OF COST

¶93

O.A No. 155 OF 2022

…. Applicant Bank….

V E R S U S

M/S NEW SHUBHLAXMI GARMENTS , through its ProprietorMr. Dharmendar Singh Rajawat, havingregistered office at KhadiBhandar Road, Near Head Post Office, Dausa - 303303.

¶98

MR. DHARMENDAR SINGH RAJAWAT S/o Mr. Sukhveer Singh Rajawat, Resident of A-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

¶99

M/S RAJAWAT SUITING AND SHIRTING , through its ProprietorMrs. SushmlataKanwar, having registered office at A-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

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MRS. SUSHMLATAKANWAR W/o Mr. Dharmendar Singh Rajawat, Resident ofA-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

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MR. RAMESH CHAND MEENA S/o Mr. Ramphool Meena, Resident of Village Devanwada, Post Gothda, Dausa - 303303.

¶102

MR. DEEPAK KUMAR SINGH S/o Mr. Heera Narayan Singh, Resident ofA-51, Raj Vihar Colony, Gupteshwar Road, Dausa - 303303.

¶103

……Defendant….

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S. No.	Item of Costs	Amount in Rupees
1.	Fee on the application	34,000
2.	Process Fees (inc. Publication)	426
3.	AdvocateFees	1,250
4.	Commissioner/Receivers/Valuation/Security Fee	NIL
5.	Miscellaneous Charges	NIL
	Total Costs	35,676

¶105

(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Place-Jaipur Dated-22/09/2022

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OA No. 155 OF 2022

22/09/2022 Counsel: Sh. ALOK GARG, Counsel for the Applicant Bank. Defendants are Ex-parte.

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Heard arguments of Ld. Counsel for the applicant bank.

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Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepared accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015 and after verification place the same before the Tribunal.

¶113

Presiding Officer, Debts Recovery Tribunal, Jaipur

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OA No. 155 OF 2022

22/09/2022

Counsel: Sh. ALOK GARG, Counsel for the Applicant Bank. Defendants are Ex-parte.

¶119

The Tribunal vide order dated 22/09/2022 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

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The Registrar vide order dated 22/09/2022 verified the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. Recovery Certificate is prepared accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record.

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(Vivek Saxena) Presiding Officer, Debts Recovery Tribunal, Jaipur

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OA No. 155 OF 2022

DEBTS RECOVERY TRIBUNAL, JAIPUR

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ORIGINAL APPLICATION NO. 155 OF 2022

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The Recovery Certificate prepared in compliance of order dated 22/09/2022 passed by Hon’ble Presiding Officer, DRT, Jaipur in Original Application No. 155 OF 2022 Title- Canara Bank Vs. M/S NEW SHUBHLAXMI GARMENTS & ors has been checked and may be verified.

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Section Officer

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Assistant Registrar

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On the basis of the report of Section Officer the Recovery Certificate is verified. The Recovery Certificate is placed below for the signature of Hon’ble Presiding Officer please.

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Assistant Registrar

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Hon’ble Presiding Officer

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Canara Bank v. M S New Shubh Laxmi Garments

Case brief

What is this about?

What did the court decide?

Canara Bank v. M S New Shubh Laxmi Garments

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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